Be guarded what you say in emails! They’re a matter of record though they never seem to feel like it. Although the Competition Commission is unlikely to change its recommendations, the revelation following recent discoveries of emails between operators in the north east (and elsewhere) suddenly gives the £25mil investigation into the local bus market the edge it never had.
Rather late in the day, here is the evidence that the CC wanted all along: frank emails that appear to carve up and protect territories. “We told you so” seems to be ringing clearly out of Southampton Row.
It’s all about territory, retaining it and preserving it. You come on to my turf and we’ll not just tread but stamp on your toes back home. Such messages are anti-competitive. But might they be practical? The reason I ask is that few bus networks can sustain prolonged competition. It’s self-defeating. Operators know this and that’s why there are few Big Five incursions.
And that’s why there’s still the concept of “territory”. It’s been with us a long time. Pre-1931, operators fought long and hard to establish themselves. They were suspicious of their neighbours and would try to out flank each other and manœuvre themselves into advantage or by using blocking tactics.
Along came railway interests in the late 1920s, 55 years-worth of regulation from 1931 and nationalisation. Little wonder that territory’s embedded in our culture. Some of these territories are shrinking around the unprofitable margins but that doesn’t mean higher prized core markets can sustain competition.
Today’s fortnightly Passenger Transport magazine devotes six pages plus its front page to competition issues and the analysis makes interesting reading. Passenger Transport also implies that industry managers all know each other well and that this marks out the bus industry as different to other retail sectors. It’s certainly true that directors & managers will know each other, often well. It’s the nature of the beast. Let’s face it, many have more than a passing interest in the industry and we all revel in vibrant industry news & speculation about each other; we all like to know about and comment on what’s going on down the road. Why else would there be such a saturated, even overtraded, industry newsprint market?
Passenger Transport also makes mention of the strong language contained in emails between competitors. Busmen are nothing other than earthy people and always have been. Until recently, they’ve often been passionate people who’ve risen from the ground floor. They retain that grittiness and an unpretentious approach to life; that sleeves-rolled-up-can-do attitude that’s served us well for generations. Until email came along, spoiled it all and exposed the under-belly of the industry.
Friday, 11 November 2011
Foot Shooting
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With regard to the Competition Commission findings and so on, there's an article in this week's Private Eye about it, available
here for those who are interested.
Eric, your link doesn't seem to work (for me at any rate).
I wonder which is actually worse; agreeing to keep to each your own territory, and swap a depot which is "out on a limb" or buy up a competitor, sell it to a rival who then announces closure within an hour of the deal?
Its old news now, of course, but GoAhead Northern bought Timdon Motor Services' "Tyne & Wear Omnibus Comapny" operation, and immediately sold it to Busways Travel Services. They, in turn, cancelled all its service registrations at the then required 42 days notice.
Then, long established OK Travel developed a network of competitive routes in Gateshead while GoAhead Northern drivers were on strike, only to eventually be bought out and closed down.
Is Northern's "coat of many colours" route branding less marketing and more a way to hide its dominance?
Try this link
This may be better.
"Passenger Transport also implies that industry managers all know each other well and that this marks out the bus industry as different to other retail sectors."
I find that rather hard to believe. Some types of retailers tend to 'congregate' together - for example, markets, or streets like Tottenham Court Road in London. Many industries also have trade associations, because however much they compete with each other, there are also issues that affect all of the players in an industry in a similar manner - proposed legislation, for example. So to suggest that the bus operating industry is somehow unique in that respect is, to my mind, simply not credible.
Email is not secure, as I would have thought most people realise by now. My understanding was that these deals used to be arranged at meetings in pubs. Just remember that what you say in a pub might be heard by somebody at the next table; what you say in an email might be read by anybody who has an internet connection!
The various internet groups (Yahoo, Google etc) can also be an interesting breeding ground for comments - you only have to read between the lines. Better still, there's often a more junior member of staff happy to 'spill the beans' without fully appreciating the significance of his comments.
Should we all stop posting now then ? After all, we don't know who we are talking to,and the blog owner is rather shy.
Who knows where our comments end up ?
What this shows to me is that, as I suspected all along, the Competition Commission has little real understanding of the bus industry. They should have read The History of British Bus Services by Prof John Hibbs before they started work.
For a classic example of how the public sees these things see the following link:
http://www.fixmytransport.com/campaigns/run-the-2-bath-buses-an-hour-at-half-hour-interval
Go North East is probably the least dominant major operator you could come across - most of its mileage is shared with Arriva, Stagecoach or both.
If you want to talk dominance, what about National Express West Mids?
Anonymous said...
"Should we all stop posting now then ? After all, we don't know who we are talking to,and the blog owner is rather shy.
Who knows where our comments end up ?"
The trick is to remain anonymous - if you feel the need to!
Oh dear, dear such heinous crimes. Be careful or you might be posted to the 'Eastern Front'.
I wonder what our equivalent would be today? No doubt our views will vary as to whether it is the bus operator or the civil servant that you are considering. (The latter presumably gets promoted with a bonus for results).
Or maybe there is a Gulag being built somewhere to which such miscreants can be sent!
Hope you take these comments with the humour they are intended.
Anon at 1847 - you have a point. And it's not exactly like NXWM are that good either! Their presentation, in particular, is appalling!
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